RepublicanBill · S. 3246· Senate(119-S-3246)

Service Members Tax Relief Act

Rep. Ricketts
Age: 62 years
Nebraska
Introduced
11/20/2025
Last activity
11/20/2025 — Read twice and referred to the Committee on Finance.
Sponsored by
Pete Ricketts
Cosponsors
None
Taxation
  1. Introduced
  2. In Committee

What this bill would do

This bill is called the Service Members Tax Relief Act. It was introduced in the Senate on November 20, 2025. The bill aims to change the Internal Revenue Code of 1986. Its main goal is to exempt certain income earned by active or reserve service members from taxes. However, it explicitly states that pensions and retirement pay are not included as compensation for this tax exemption. The new tax rules would apply to income earned in taxable years beginning after the date the Act is enacted.

Yes· 3 of 7

  • Does this increase the pay, pensions or support veterans receive?+7

    Provides a significant financial benefit to active and reserve service members by exempting their service income from taxes.

  • Would veterans be better off under this, taking everything together?+6

    Positively impacts active and reserve service members by providing significant tax relief on their earned service income.

  • Does this cut taxes for middle-income families?+5

    The bill exempts active and reserve service members' compensation from federal income tax, directly reducing tax burdens for many middle-class military personnel.

The opposite

  • Would retired people be better off under this?-2

    Excludes retired service members from the tax exemption because retirement pay and pensions do not qualify as compensation under the bill.